Insurance For High Net Worth Individuals

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Personal Insurance; A safety Net For High Net Worth People

There are many benefits to having been blessed with wealth. You may have a vacation home, boat, plane, or get to travel the world. But individuals with high net worth have increased risks that need to be managed. Personal insurance policies created for high net worth individuals can have much higher limits than average policies, providing the adequate coverage high net worth individuals need for more expensive homes and automobiles, as well as valuable collections, yachts, and aviation.

One-way, high net worth insurance responds to this challenge is by bringing multiple areas of coverage and expertise together into a comprehensive insurance solution based on your individual needs.  Many “standard” personal insurance policies have limitations that create the need for a different personal insurance approach.

We can offer specific coverage for the following risks:

  • Foreign travel
  • Expensive art or gun collections
  • Expensive jewelry
  • Private aviation
  • A greater amount of cash in the home
  • Expensive or custom vehicles
  • Watercraft that are not covered under a normal policy
  • Hired staff
  • Custom homes with unique or one of a kind construction
  • Homes in foreign countries
  • Involvement in charities that create new risks
  • Custom furniture or other personal items
  • Imported fixtures

Affluent individuals often choose a personal umbrella policy, which provides expanded coverage and increased protection of their assets beyond what is provided under homeowner’s and auto insurance policies. Navigating the insurance maze can certainly be challenging. But it’s important to have the right amount of insurance coverage if you want to preserve the wealth you’re working so hard to build.

Navigating Home Insurance

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Risks, Savings, and Choosing the Right Agent

Understanding the Risks

Homeownership comes with various risks, including natural disasters, theft, and fire. Being aware of these risks and how they can impact your property is the first step in securing adequate insurance coverage.

How to Save on Your Insurance Premiums

Saving on home insurance doesn’t mean cutting corners on coverage. Instead, focus on reducing risks by installing safety features, maintaining a good credit score, and performing annual policy reviews to ensure you’re not over or under-insured.

Choosing the Right Insurance Agent

The right agent can make all the difference. Look for someone with a strong understanding of the local risks, a track record of excellent customer service, and transparent advice. Ask about their experience, customer reviews, and their approach to claims and policy adjustments.

Understanding the risks, finding ways to save, and choosing a knowledgeable agent are key to navigating the complexities of home insurance. These steps not only ensure you have the right coverage but also help in maintaining peace of mind as a homeowner.

 

 

 

 

 

 

 

Call Your Personal Insurance Agent

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When to Call Your Personal Insurance Agent

Personal insurance is a vital component of financial planning and risk management. Whether you have auto, home, or other types of insurance, your insurance agent plays a crucial role in helping you navigate the complexities of your policies. However, many people are unsure of when it’s appropriate to contact their personal insurance agent.

Policy Review and Updates

One of the most common reasons to call your personal insurance agent is to review and update your policies. Life is dynamic, and your insurance needs may change over time. Major life events such as getting married, having children, buying a new home, or starting a business can all impact your insurance requirements. An annual policy review with your agent can ensure your coverage aligns with your current situation and financial goals.

Claim Filing

In the unfortunate event of an accident or damage to your property, you should reach out to your insurance company or agent to begin the claims process. Your agent will guide you through the necessary steps, helping you understand the documents you need to provide and the timeline for filing the claim. They can also offer advice on whether it’s in your best interest to file a claim, considering your deductible and potential premium increases.

Coverage Questions

Insurance policies can be complex, filled with industry-specific jargon and nuances. If you have questions or concerns about your coverage, don’t hesitate to contact your insurance agent. They can clarify policy details, explain coverage limits, and help you understand any exclusions that may apply.

Policy Changes

When you experience changes in your life, such as purchasing a new vehicle, renovating your home, or taking on a new hobby, it’s essential to inform your insurance agent. These changes can affect your coverage requirements, and your agent can help you make adjustments to ensure you remain adequately protected. For instance, you may need to update your auto insurance policy if you purchase a new car or adjust your homeowner’s insurance if you expand your living space.

Changes in Financial Situation

A significant change in your financial situation, such as a promotion, a new job, or a change in income, can influence your insurance needs. Your insurance agent can help you assess how these changes affect your policies and recommend appropriate adjustments.

Coverage Comparisons

If you’re considering switching insurance providers or exploring new coverage options, your personal insurance agent is a valuable resource. They can provide you with quotes, explain the pros and cons of different policies, and help you make an informed decision based on your needs and budget.

Your personal insurance agent is there to assist you with all aspects of your insurance needs. Regular communication with your agent is crucial to ensuring that your coverage remains up-to-date, comprehensive, and cost-effective. From policy reviews and updates to claims assistance and coverage questions, your insurance agent is your trusted partner in protecting your financial well-being. Don’t hesitate to reach out whenever you have questions or when life changes warrant a closer look at your insurance coverage. Your agent is there to provide the guidance and support you need.

 

How To Stop Porch Pirates?

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The holiday season is filled with fun, parties, food, gifts, overeating, and, unfortunately, some risk. One of the fasted growing risks for many people is stolen packages by porch pirates. More than 25 million Americans have their packages stolen right from their doorsteps by porch pirates each year, don’t be one of them.

Your homeowners or renter’s insurance generally may not cover this loss as it tends to be under your deductible. There could be covered if you have personal property off-premises insurance.

Call our office for a review of your homeowner’s insurance, as each policy is unique to your circumstances.

Things To Do

  • Delivery confirmation is a good way to prove the package was delivered.
  • Thieves will follow delivery trucks, waiting for the perfect target.
  • These thieves commonly strike during working hours as many homes are empty at that time.
  • You can insure your packages.
  • Consider having a person there when the delivery is scheduled.
  • Install a security camera.

What To Do If A Package Is Stolen

  • Track your package. Check the delivery confirmation and tracking number.
  • Make sure a neighbor did not pick it up for you.
  • Contact the seller. Different retailers have different policies and processes for handling stolen items, but usually, you are entitled to a refund or a replacement item.
  • File a claim with the shipping company.
  • Check your Credit Cards for Purchase Protection.

Call our office for a review of your homeowner’s insurance, as each policy is unique to your circumstances. We are happy to help you through your claim and help you determine the best course of action.

 

Navigating Insurance Issues in the Sharing Economy

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The sharing economy has transformed industries and consumer behaviors, creating new opportunities and challenges. As individuals increasingly participate in platforms like Airbnb, Uber, and TaskRabbit, the landscape of traditional insurance has had to adapt to accommodate this evolving economic model. The integration of sharing economy services into daily life has given rise to a myriad of insurance concerns, prompting a reevaluation of existing policies and the development of innovative solutions.

The Rise of the Sharing Economy

The sharing economy, characterized by peer-to-peer exchanges of goods and services, has gained widespread popularity due to its cost-effectiveness, convenience, and flexibility. Platforms like Airbnb and Uber have revolutionized accommodation and transportation respectively, allowing individuals to leverage their underutilized resources to generate income. However, this new economic paradigm has brought forth several insurance-related challenges that need to be addressed.

Insurance Gaps and Coverage Limitations

One of the primary issues in the sharing economy is the potential gap in insurance coverage. Traditional insurance policies, designed for personal use, may not adequately protect individuals engaging in commercial activities within the sharing economy. For instance, a homeowner’s insurance policy might not cover damages caused by a guest staying through Airbnb. Similarly, personal auto insurance policies might not provide coverage during ride-sharing activities.

These gaps in coverage have prompted sharing economy platforms to develop their own insurance policies. For instance, ride-sharing platforms often provide liability coverage for drivers during active rides. However, these policies are typically contingent on certain conditions being met, such as the ride being booked through the app and the driver not deviating from the designated route. These limitations can still leave participants vulnerable in certain scenarios.

Regulatory Challenges

The sharing economy operates across national and local boundaries, making it difficult to establish consistent regulations and insurance standards. Insurance regulations can vary significantly from one jurisdiction to another, creating a complex landscape for sharing economy platforms to navigate. This lack of uniformity can result in confusion for both providers and consumers, and it can also hinder the development of comprehensive insurance solutions.

Innovations in Insurance Solutions

Recognizing the need to address these insurance gaps, companies and policymakers have started exploring innovative solutions. Some sharing economy platforms have partnered with insurance providers to offer hybrid policies that cover both personal and commercial activities. These policies aim to bridge the gap between traditional insurance and the unique risks associated with the sharing economy.

The sharing economy has undoubtedly brought about transformative changes to how we access goods and services. However, it has also exposed gaps and limitations in traditional insurance models. To fully realize the potential of the sharing economy while safeguarding the interests of all participants, a collaborative effort involving sharing economy platforms, insurance providers, regulators, and consumers is necessary. By addressing insurance issues head-on, we can create a safer and more inclusive environment for this new economic paradigm to thrive.

 

Questions You Should Ask Yourself About Your Personal Insurance

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Everyone needs some level of personal insurance. Most purchase auto insurance, homeowners or renters insurance, life insurance, and maybe personal umbrella coverage. There are some many choices that at times you may wonder which is best for you and your family.  We put together a list of questions you might think about as you consider your personal insurance. We always recommend you review your personal insurance annually to make sure it is still meeting your needs.

Do Agents Offer Something Different?

We would answer that as a yes because agents have access to different kinds of insurance companies, they offer you a choice and work to provide the best possible combination of coverage price and service. Agents are a small business whose goal is to look out after their clients.

If I Rent, Do I Still Need Insurance?

Renters should purchase renters insurance to protect their personal property like; furniture, guns, electronics, and clothes. Your apartment owner may also require liability coverage, which can be included in renters insurance. Renters’ insurance is very affordable and can be an effective way to make sure you are covered in the event of a loss.

Does The Type Of Vehicle Affect My Auto Premiums?

Yes. The make and model of the car you drive play a factor in your car insurance rates. The cost of your vehicle also makes a big difference; the more it costs to repair or replace your vehicle, the more you will pay to insure it.

Are There Auto Insurance Discounts?

Many insurance carriers offer lower rates to good students, military personnel and people with excellent credit. Ask your agent what discounts are available.

Will a Parking Ticket Affect My Auto Insurance Premiums?

Not usually. You can generally have one ticket on your history without it adversely affecting your premium.

When Should I Consider Life Insurance?

You might consider life insurance when you get married or start having children. Some employers offer a small amount of life insurance, but these plans generally are not enough. Life insurance can provide peace of mind to loved ones in the event of an untimely death of a breadwinner. Life insurance proceeds can be used to fund college, pay for outstanding bills, to supplement lost income for a period of time.

Life insurance premiums are at all-time lows, so it can be a very cost-effective financial planning tool.

Is A Personal umbrella Policy important?

Most of us engage in daily activities that put us in danger. Your danger of being sued increases if you own a car or an automobile. Many Americans only purchase vehicle liability insurance for $300,000 and homeowners’ liability insurance for no more than $300,000. A personal umbrella policy can give you an extra $1 million in liability protection.

I Am Remolding My Home. Do I Need To Adjust My Insurance?

If your insurance is written on a replacement cost basis, there may be no need to make adjustments, but we always recommend you contact your agent to review this question. The answer depends on the kind of work you are doing. For example, if you are replacing your carpet with a similar product, you may not need to make any changes in your policy. But if you are adding a 500-foot addition on to your home, then this would definitely require adjustments in the value of your home.

For example, say your insurance valuation is based on a kitchen with laminate countertops and generic cabinets. But then you spend $60,000 on granite countertops, custom cabinets, and top-of-the-line appliances. Would your existing coverage be sufficient to rebuild your remodeled kitchen after a loss? Most likely, you would have an issue.

Before entering any renovation project, contact your agent; they can help you identify which areas may require insurance updates.

I Have A Home-Based Business. Should I Get Additional Insurance?

Homeowners or renters insurance policies do not cover any business risks. If you run a business out of your home, we recommend you purchase a business insurance policy. If you have customers in your home for business purposes, your home insurance does not provide any coverage.  Depending on the type of business, coverage may be added to your existing homeowner’s policy through a rider or endorsement.

I Just Bought A Personal Watercraft. Is That Covered?

Unlike small boats, personal watercraft are not generally covered by your homeowners. This would include; bodily injury to you, an uninsured watercraft operator causing that. The legal costs if you’re sued due to an accident.  And any damage to the personal watercraft you own.

 

The Pitfalls of Cheap Home Insurance

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Home insurance is a safeguard against the uncertainties of owning a property. It provides financial protection in case of damage, theft, liability claims, and other unforeseen events. While the appeal of affordable premiums can be enticing, it’s essential to be aware of the potential downsides associated with opting for the cheapest home insurance available.

  1. Inadequate Coverage:

One of the most significant downsides of cheap home insurance is the potential for inadequate coverage. Bargain policies often provide minimal protection, leaving homeowners vulnerable to significant financial losses in the event of a disaster. Basic coverage might not encompass all the risks that your property and possessions face, which could lead to out-of-pocket expenses that outweigh any initial savings.

  1. High Deductibles:

Cheap home insurance policies frequently come with high deductibles. A deductible is the amount you have to pay out of pocket before your insurance coverage kicks in. While opting for higher deductibles can lower your monthly premiums, it also means that you’ll have to bear a more substantial financial burden when you need to make a claim. This can be particularly challenging in the wake of a significant event, such as a fire or natural disaster.

  1. Limited Additional Coverages:

Affordable home insurance policies often lack the flexibility to add optional coverages that could enhance your protection. These additional coverages might include provisions for jewelry, electronics, or other high-value items. Without these options, you might find yourself without proper coverage for items that are of significant value to you.

  1. Risk of Insufficient Liability Coverage:

Cheap home insurance might provide the minimum liability coverage required, but this might not be enough to adequately protect you in the event of a lawsuit. If someone gets injured on your property and sues you for damages, insufficient liability coverage could leave you personally responsible for covering the remaining expenses.

  1. Poor Claims Process:

Cut-rate insurance companies often prioritize cost-cutting over efficient claims processing. This can lead to lengthy delays and frustrating experiences when you’re trying to file a claim. Slow claims processing can further compound the stress and financial strain that can arise after a disaster.

  1. Exclusions and Limitations:

Cheap home insurance policies tend to have more exclusions and limitations, which can restrict the situations in which you can make a claim. Certain types of damages or events might not be covered under these policies, leaving you vulnerable to potential financial losses.

Home Safety While Traveling This Summer

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Home Safety While Traveling This Summer

Protecting your home while traveling during the summer is crucial to ensure its security. Here are some essential tips to help you keep your home safe:

Secure all doors and windows: Before leaving, double-check that all doors and windows are properly locked. Install sturdy deadbolt locks on exterior doors, reinforce windows with security film or bars, and consider using a doorbell camera or a smart lock for added security.

Set up a home security system: Install a reliable home security system that includes motion sensors, door/window sensors, and surveillance cameras. Many systems can be monitored remotely via smartphone apps, enabling you to keep an eye on your property from anywhere.

Use timers for lights and electronics: Set up timers for lights, TVs, and radios to create the illusion of an occupied home. Program them to turn on and off at different times throughout the day to deter potential burglars.

Arrange for mail and package delivery: An overflowing mailbox or packages left on the doorstep can indicate that nobody is home. Temporarily suspend mail and newspaper delivery or ask a trusted neighbor to collect them for you. If you’re expecting packages, arrange for them to be held or delivered to a secure location.

Inform a trusted neighbor or friend: Let a neighbor or friend you trust know about your travel plans. Provide them with contact information and ask if they can keep an eye on your property, report any suspicious activity, or park their car in your driveway occasionally.

Don’t advertise your absence on social media: Avoid posting about your travel plans on social media platforms until after you return home. Broadcasting your absence can attract unwanted attention from potential burglars.

Consider light and sound deterrents: Install motion-activated exterior lights to illuminate your property if anyone approaches. You can also use sound deterrents like a radio or dog barking sound device to create the impression of someone being home.

Secure valuable items: Keep valuable items, such as jewelry, important documents, and portable electronics, in a secure safe. This provides an extra layer of protection against theft.

Disconnect unnecessary electronics: Unplug non-essential electronics and appliances to prevent power surges and reduce the risk of electrical fires while you’re away.

Hire a house sitter or home security service: If you’re comfortable with it, consider hiring a house sitter who can stay in your home while you’re away. Alternatively, some home security companies offer services where professionals periodically check on your property.

Remember, each home and neighborhood may have specific security needs, so assess your situation and take appropriate measures accordingly.

Low Cost Insurance Is Not Better Insurance

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Insurance is a necessary expense for many people. Whether it’s health insurance, car insurance, or home insurance, having coverage can give you peace of mind and protect you from financial ruin in the event of an accident or unexpected event. However, not all insurance policies are created equal, and opting for the cheapest option may not always be the best choice. In fact, cheaper insurance is often not better insurance. Here are some reasons why.

Lower Coverage Limits

One of the main ways insurance companies can offer cheaper rates is by offering lower coverage limits. Coverage limits are the maximum amount of money an insurance company will pay out for a claim. If you opt for cheaper insurance, you may be getting lower coverage limits, which means you may not be fully covered in the event of a major accident or unexpected event. This can leave you with significant out-of-pocket expenses that you may not be able to afford.

Higher Deductibles

Another way insurance companies can offer cheaper rates is by increasing the deductible – the amount of money you must pay out of pocket before your insurance coverage kicks in. While a higher deductible can lower your monthly premium, it also means you’ll have to pay more out of pocket before your insurance company starts covering the cost of damages. This can be a burden, especially if you’re already struggling to make ends meet.

Exclusions and Limitations

Cheaper insurance policies may also come with exclusions and limitations that can limit your coverage. For example, some health insurance policies may exclude coverage for pre-existing conditions or limit coverage for certain medical treatments. Car insurance policies may exclude coverage for certain types of accidents or limit coverage for damages to your vehicle. These exclusions and limitations can leave you with significant gaps in coverage that can leave you vulnerable to financial loss.

Poor Customer Service

Cheaper insurance policies may also come with poor customer service. Insurance companies that offer cheap rates often need more resources to invest in customer service, which can lead to long wait times, unhelpful representatives, and delayed claims processing. This can be frustrating and stressful, especially if you need to file a claim in a hurry.

In conclusion, while it may be tempting to opt for the cheapest insurance policy available, it’s important to consider the potential drawbacks of doing so. Cheaper insurance policies may offer lower coverage limits, higher deductibles, exclusions and limitations, poor customer service, and less comprehensive coverage. Instead, it’s important to shop around for insurance policies that offer the right balance of coverage and affordability. By doing so, you can ensure that you’re fully protected in the event of an accident or unexpected event without breaking the bank.

Personal service combined with depth of knowledge in the insurance marketplace, and access to a wide range of carriers is the combination of factors that sets Oakwood Insurance apart from its competitors. We not only work in the north metro, but it’s also our home. We strive to support the vibrancy and growth of this community. We want it to thrive, and we want you to thrive. We will review your insurance coverage and help you understand what you have and ensure that it’s the best fit for your goals.

 

 

Insurance For High-Net-Worth Individuals

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High net-worth individuals (HNWIs) have unique insurance needs due to the substantial assets and investments they hold. Insurance coverage for HNWIs goes beyond standard policies and includes specialty coverage tailored to their specific risks and lifestyle. In this blog, we’ll explore some of the insurance types that HNWIs should consider protecting their assets.

High-Value Home Insurance: For high-net-worth individuals, their home is often their most significant investment. Standard homeowners’ insurance policies have limitations on coverage and may not cover the full replacement cost  (unique woods and fixtures) of a high-value home in case of damages or loss. High-Value Home Insurance policies offer broader coverage and higher limits, covering the full cost of rebuilding or replacing the property and its contents.

Umbrella Liability Insurance: HNWIs often have a higher risk of lawsuits due to their assets, investments, and public exposure. Umbrella Liability Insurance provides additional protection beyond the limits of standard policies, such as homeowners, auto, and watercraft insurance. The coverage amount can range from $1 million to $100 million, depending on the individual’s needs.

Collector Car Insurance: HNWIs often have collections of exotic or classic cars, which require unique coverage due to their high value and limited use. Collector Car Insurance provides coverage for damage, theft, and liability. It also includes coverage for restoration and repair costs.

Fine Art Insurance: HNWIs often have valuable art collections, including paintings, sculptures, and antiques. Fine Art Insurance covers damage or loss to these collections, including transit and storage. The coverage amount is based on the appraised value of the collection.

Kidnap and Ransom Insurance: HNWIs may be at risk of being kidnapped or extorted due to their public exposure or high net worth. Kidnap and Ransom Insurance provides coverage for ransom payments, crisis management, and legal fees. It also provides security consulting services and travel advisories.

Private Aviation Insurance: HNWIs often own private planes or use private aviation services for business or leisure. Private Aviation Insurance provides coverage for damage, liability, and personal injury. It also covers airport premises liability and medical payments.

In conclusion, HNWIs have unique insurance needs that require specialized coverage to protect their substantial assets and investments. By considering the insurance types mentioned above, HNWIs can ensure they have the right coverage to protect their lifestyle and peace of mind.